RHB expects healthy money supply, loan growth for Malaysia in 2019

RHB Research said the higher projections was based on the eight per cent year-on-year (y-o-y) M3 growth in October, which accelerated at the quickest pace in five years time from a revised 7.2 per cent in September, supported by higher demand for funds from the public sector. — Reuters pic
RHB Research said the higher projections was based on the eight per cent year-on-year (y-o-y) M3 growth in October, which accelerated at the quickest pace in five years time from a revised 7.2 per cent in September, supported by higher demand for funds from the public sector. — Reuters pic

, Dec 3 — RHB Research Institute Sdn Bhd expects ’s money supply (M3) and  to grow at a healthy pace of 5.5 per cent and 5.2 per cent respectively in 2019, from estimates of 5.2 per cent and five per cent, in 2018. 

In a note today, the research house said the higher projections was based on the eight per cent year-on-year (y-o-y) M3 growth in October, which accelerated at the quickest pace in five years time from a revised 7.2 per cent in September, supported by higher demand for funds from the public sector.

“Separately, October trended higher for the third straight month to six per cent y-o-y from 5.7 per cent in the previous month, driven by higher loans extended to the corporate sector, which surged to 6.1 per cent y-o-y during the month fom 5.4 per cent in September,” it said.

Despite the higher M3 and loan growth projections for 2019, RHB Research, however said, the marginally higher growth in money supply was unlikely to result in any demand-pull price pressure, as core remained subdued.



“We are of the view that the will maintain the overnight policy rate at 3.25 per cent for 2019, as this would help keep stability of the ringgt versus the , against the backdrop of ongoing monetary tightening by the US Federal Reserve and the greenback’s strength,” it added. — Bernama

Source: The Malay Mail Online





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